The Willamette River Case: Gains 



253 



TABLE 54. Regional Distribution of Gains from Federal Power Sold 

 to Electro-Process Industries 



Difference in annual power bill, Northwest federal vs. Ohio Valley 



private $900,000 



Relevant share (22.34 per cent) of total going originally to aluminum 



industry 201 ,100 



Division of relevant share between: 



Aluminum industry retained gains 30,800 



Increase in transport costs 170,300 



Pacific Other 



Coast regions 



Division of aluminum industry's share of before-tax 

 gains: 

 55 per cent before-tax returns to capital: 



After-tax rewards to venture capital S 800 $ 7,600 



Reduction in general tax liabilities * 1,100 7,400 



12 per cent as labor's share 3,700 — 



33 per cent as consumers' share 1,000 9,200 



Total aluminum industry retained gains $ 6,600 $24,200 



Division of railways' share of before-tax gains: 

 55 per cent before-tax returns to capital: 



After-tax rewards to venture capital $ 1,200 $10,500 



Reduction in general tax liabilities • 1,500 10,200 



12 per cent as labor's share 2,500 2,500 



33 per cent as general railway consumers' share 1,400 12,600 



Total railways' share ($170,300) less marginal costs . . $ 6,600 $35,800 



Regional locus of total gains shared by aluminum and 



railway industries " $13,200 " $60,000 



" Using weights derived from tax Model A. 

 ** Discrepancies in totals caused by rounding. 



poration would represent an increase in the demand for factor serv 

 ices in the Pacific Coast region, and a relative decline in the demand 

 for such services in the regional markets from which the Chicago 

 plant draws its factors. The coastal railways would gain, whereas 

 the transcontinental railroads would lose in the petroleum coke 

 movements. The St. Paul plant of the Koppers Chemical Company 

 would gain from the increased orders for coal tar pitch; the Iron- 

 ton, Ohio, plant of Allied Chemical and Dye Company would 



